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Review of Business and Economics Studies

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Vol 3, No 4 (2015)
5-11
Abstract
The article deals with the issue of choosing the innovative modernization strategy in the Russian Federation and with the suggestions made by the leading groups within the establishment concerning the growth incentives. We examine various scenarios of lobbying the industry and administration interests in the public innovation policy development process. We examine the strengths and weaknesses of the priority innovative development areas suggested by the industry representatives. We make a forecast for a mid- term related to the Russian innovation project transformation, given the “war of sanctions” and the import substitution policy implemented.
12-21
Abstract
We investigate the role of energy price shocks on business cycle fluctuations in Bangladesh. In doing so, we calibrate a Dynamic Stochastic General Equilibrium (DSGE) model, allowing for both energy consumptionby households and as an input in production. We find that qualitatively temporary energy price shocks andtechnology shocks produce similar impulse response functions, as well as similar (quantitatively) auto-correlations in aggregate quantities. The variance in aggregate quantities are better explained by technologyshocks than by energy price shocks, suggesting that technology shocks are more important source of fluctuationsin Bangladesh.
22-43
Abstract
The tools for estimating expected returns have advanced from mean-variance relationship to CAPM, a one-factor model that set the background for a more developed multifactor Fama-French model. Different developed and emerging markets were considered while testing the CAPM and the three-factor model. However,Russian capital market was lacking the Fama-French model test. This is a market with unique conditions of the transitional economy. The testing of the validity of the model on RTS was chosen as an objective for this research. With the dataset of 50 blue-chip Russian companies the results revealed that Fama-French outperforms CAPMon RTS index. Despite that, there are several limitations to the model due to the market inefficiency in Russia.This fact leaves arbitrage opportunities for investors.
44-63
Abstract
Econophysics has developed as a research field that applies the formalism of statistical mechanics and quantum mechanics to address economics and finance problems. The branch of econophysics that applies quantum theory to economics and finance is called quantum econophysics. In finance, quantum econophysics’ contributions have ranged from option pricing to market dynamics modeling, behavioral finance and applications of game theory, integrating the empirical finding, from human decision analysis, that showsthat nonlinear update rules in probabilities, leading to non-additive decision weights, can be computationally approached from quantum computation, with resulting quantum interference terms explaining the non-additiveprobabilities. The current work draws on these results to introduce new tools from quantum artificial intelligence,namely quantum artificial neural networks as a way to build and simulate financial market models with adaptiveselection of trading rules, leading to turbulence and excess kurtosis in the returns distributions for a wide range of parameters.
64-78
Abstract
The article shows key business value drivers, their importance and applicability in investment decision-making process and in business efficiency analysis. It also shows the correlation between shareholders and stakeholders value. The article presents such approaches of business valuation as market capitalization approach, DCF and EVA approaches of fair value analysis, and fair multiples valuation model. The use of these models shows the main value drivers which enable detailed value creation analysis. The results of models created in this work are tested: we built a real model of business valuation and key value drivers analysis, with evidence from RUSAL Group.
79-87
Abstract
Estimation of social network’s willingness to help is a key factor in decision making, when setting up a crowdfunding (CF) campaign. This study seeks to identify the effect of past experience on social engagement attitude, such as commitment to participate in crowdfunding activities. We explore impact of differences in investor’s utilities from participating in crowdfunding, related to investor’s beliefs, behavioral patterns and background such as entrepreneurial experience and motivation to attempt (assumed or factual), attitude to gambling, career preferences and some other. In addition to self-reported survey data (N = 120), we analyze the magnitude of the most commonly used project performance metrics in campaign’s success: project’s goal, project’s subject, geographical location, duration of a campaign, number of backers and amount funded (N = 1000). Data is obtained from KickStarter.com server. Our findings suggest that participation grows from previous interactions with crowdfunding, other experience is insignificant.Common performance metrics have impact on campaign’s success, though our findings propose two of them insignificant, namely duration and location. Given previous findings state duration as important determinant of success and lack of data on estimating willingness to help, findings carry implications on estimating success determinants of CF projects.
88-92
Abstract
While economics derives its value from daily activity of its participants, logically making it a derivative (speed), a traditional approximation of economic variables is carried out using a set of linear and / or nonlinear regression equations and correlation analysis, with no differentiation involved. This explains why the traditionalanalysis is not capable of identification and prevention of a looming economic crisis: firstly, linear and nonlinearregression value approximation method always relies on continuity assumption of a variable, and secondly, focusing on speed of economics doesn’t solve a known limitation of a derivative - its continuity cannot be predicted. This limitation is proposed to be solved with volumetric distribution analysis using volumetric 3D geometry, allowing tracing how distribution of the entire population of the examined variables changes intime and volume as volumetric geometric figures, and what effect it has on continuity of its gradient -the “barometer” of an economic system. Our hypothesis is that a system is stable when it takes a nondegenerate geometric shape and unstable otherwise. An economy can take one shape or another, as volumetric distribution analysis shows, and visualizing it with geometric shapes and respective gradient can help predict its continuity.


ISSN 2308-944X (Print)
ISSN 2311-0279 (Online)